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Following is the transcript of the press conference by the Chief Executive, Mr Tung Chee Hwa, today (September 5) on Article 23 of the Basic Law at the Central Government Offices New Annex Conference Hall:

Reporter: I have three questions. The first is why is the Government withdrawing the national security bill; and the second is what will the Government do after the bill is withdrawn, will they start consultation on the bill very soon or when; and the third one is, will a white bill be issued?

Chief Executive: Well, there are two reasons why we have decided to do this. Firstly, I have seen that there are still some concerns expressed in the community about Article 23, and for that reason I think that we need to re-examine the whole issue. And secondly, we will want to consult very widely in the community again and until there is sufficient consultation and support, we are not going ahead with the legislative process. And the focus of the community should be on the economy, and this is what I hear when I walk around and talk to people, that we have gone through really some tough times with our economic restructuring and that SARS has additionally hit us, so we need to move ahead, get the economy going again, get the unemployment situation improved. What the Central Government has done recently to support us has given us some really good signs looking into the future, there is light at the end of the tunnel, and we really need to be focused, the whole community needs to be focused to get on with this.

Reporter: Sorry, what about the same question? When will consultation, further consultation be launched?

Chief Executive: We are going to re-examine the entire issue then with the consultation. We don't have a timetable on the process at this moment.

Reporter: A question for Secretary Leung. I was wondering whether you could update us on the investigation into the former Financial Secretary Antony Leung?

Secretary for Justice: Sorry, I'm not in charge of the investigation. It is ICAC's job.

Reporter: Until now, you're supposed to make a decision about whether or not to actually press charges?

Secretary for Justice: Normally, we do not comment on cases that are under consideration. At an appropriate time, an announcement will be made.

Reporter: By withdrawing Article 23 legislation now, is Hong Kong giving up some of the leverage it might have had lately in obtaining economic concessions from Beijing? For example, you still need to negotiate details of CEPA, there are reports that Beijing does not want to do as much on a renminbi offshore centre here. Is this maybe partly just a calculation that the political price is not worth it for Beijing in terms of offering greater economic concessions to Hong Kong?

Chief Executive: I don't think you should link the two together at all. One is that on Basic Law Article 23, we looked at this thing, what is the best move forward, we think this is the best way of moving forward, to give the whole community a breathing spell, a time to re-examine Article 23 and for us to have wider consultation. And then on the other hand, there are really signs that the economy is coming back, there is a light at the end of the tunnel, and it is important that we should be focused and our focus should be on the economic front.

Reporter: But are plans for a renminbi offshore banking centre in Hong Kong not seeming maybe as likely as they were? There have been reports in the last couple of days that you maybe won't get all four of the types of banking that you wanted.

Chief Executive: I have noticed all these reports but I'm not sure they are accurate. Basically, offshore renminbi centre is an issue that I discussed with the Premier while I was in Beijing. And what the Premier agreed was this, that when the time is ripe, when the time is ripe, that Hong Kong will be given the priority to be the offshore renminbi centre. Well, the time is not ripe yet. But we will be given, of all the other cities, we will be given the priority when time comes.

(Please also refer to the Chinese portion of the transcript.)

End/Friday, September 5, 2003

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